R3Lab innovation and regulatory portraits Uganda update

This report provides an update on the insurance innovation landscape in Uganda as of July 2022. It assesses the progress of the Insurance Regulatory Authority (IRA) in implementing a 2019 action plan, identifies persistent barriers to insurance penetration, and proposes a refreshed set of recommendations to foster a more enabling environment for digital insurance and insurtech.

• Insurance penetration in Uganda has declined recently, falling from 0.86% in 2014 to 0.796% in 2021. This rate is lower than the sub-Saharan African average of 2.78%. Stakeholder consultations suggest the COVID-19 pandemic and resulting economic hardship contributed to this decline.
• Retail insurance uptake remains very low, with only 1.4% of Ugandan adults reporting having insurance as of 2018. Approximately 40% of the adult population (7.4 million people) rely on informal risk-coping mechanisms, such as community health schemes and burial societies.
• The IRA has implemented several initiatives to promote innovation, including the establishment of a regulatory sandbox in November 2020. This sandbox allows fintechs and insurtechs to test innovative products without needing formal license category adjustments; as of the report, two fintechs have entered the sandbox, with one having a product ready for market.
• Despite the introduction of the Insurance (Mobile Insurance) Regulations in 2020 to facilitate digital onboarding and payments, there has been little market uptake of these provisions. This is attributed in part to a lack of effective inter-regulatory coordination within Uganda's financial market.
• The IRA has expanded its institutional capacity to support market development, following the 2018 Insurance Act which broadened its mandate beyond soundness and consumer protection. This includes a dedicated research and market development department and a supervision department of 15 staff members.
• Current insurance innovations, such as digital SME access by Old Mutual Uganda and a digital whole-life product by Prudential Uganda, primarily target the existing client base and have not yet significantly expanded reach into underserved or rural markets.

APA

Marriner, J., Allen, M., & Hougaard, C. (2022). R3Lab innovation and regulatory portraits Uganda update. FSD Africa. https://fsdafrica.org/wp-content/uploads/2025/05/R3Lab-Uganda-Insurance-Innovation-memo_For-upload.pdf

Chicago

Marriner, James, Michaella Allen, and Christine Hougaard. R3Lab innovation and regulatory portraits Uganda update. FSD Africa, 2022. https://fsdafrica.org/wp-content/uploads/2025/05/R3Lab-Uganda-Insurance-Innovation-memo_For-upload.pdf.

Wikipedia

{{cite report |last1=Marriner |first1=James |last2=Allen |first2=Michaella |last3=Hougaard |first3=Christine |title=R3Lab innovation and regulatory portraits Uganda update |publisher=FSD Africa |date=July 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/R3Lab-Uganda-Insurance-Innovation-memo_For-upload.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{marriner2022r3lab, author = {Marriner, James and Allen, Michaella and Hougaard, Christine}, title = {{R3Lab innovation and regulatory portraits Uganda update}}, institution = {FSD Africa}, year = {2022}, month = jul, url = {https://fsdafrica.org/wp-content/uploads/2025/05/R3Lab-Uganda-Insurance-Innovation-memo_For-upload.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }